Zacks Investment Research lowered shares of Stellus Capital Investment (NYSE:SCM) from a buy rating to a hold rating in a report released on Wednesday.
According to Zacks, “Stellus Capital Investment Corporation is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies. “
SCM has been the subject of several other reports. ValuEngine downgraded shares of Stellus Capital Investment from a hold rating to a sell rating in a report on Monday, July 2nd. Keefe, Bruyette & Woods reaffirmed a hold rating and issued a $14.00 price objective on shares of Stellus Capital Investment in a report on Thursday, August 9th. Finally, TheStreet downgraded shares of Stellus Capital Investment from a b rating to a c+ rating in a report on Wednesday, July 11th.
SCM opened at $12.91 on Wednesday. The company has a market capitalization of $217.61 million, a P/E ratio of 10.67 and a beta of 0.56. Stellus Capital Investment has a 12 month low of $11.07 and a 12 month high of $14.29. The company has a quick ratio of 0.21, a current ratio of 0.21 and a debt-to-equity ratio of 0.78.
Stellus Capital Investment (NYSE:SCM) last released its quarterly earnings data on Wednesday, August 8th. The investment management company reported $0.30 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.31 by ($0.01). The business had revenue of $12.62 million during the quarter, compared to the consensus estimate of $12.21 million. Stellus Capital Investment had a return on equity of 8.16% and a net margin of 59.39%. On average, equities analysts expect that Stellus Capital Investment will post 1.27 earnings per share for the current year.
The firm also recently disclosed a monthly dividend, which was paid on Friday, September 14th. Investors of record on Friday, August 31st were issued a $0.1133 dividend. This represents a $1.36 annualized dividend and a yield of 10.53%. The ex-dividend date was Thursday, August 30th. Stellus Capital Investment’s dividend payout ratio (DPR) is presently 112.40%.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Freestone Capital Holdings LLC lifted its stake in Stellus Capital Investment by 37.2% in the 1st quarter. Freestone Capital Holdings LLC now owns 318,254 shares of the investment management company’s stock worth $3,663,000 after purchasing an additional 86,252 shares in the last quarter. LPL Financial LLC purchased a new stake in Stellus Capital Investment in the 1st quarter worth approximately $138,000. Gables Capital Management Inc. purchased a new stake in Stellus Capital Investment in the 1st quarter worth approximately $1,532,000. Finally, Stephens Inc. AR purchased a new stake in Stellus Capital Investment in the 2nd quarter worth approximately $257,000. 21.45% of the stock is owned by institutional investors.
Stellus Capital Investment Company Profile
Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund seeks to invest in companies with an EBITDA between $5 million and $50 million.
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